Financial Services Commission investigates Homeplus’s bond issuance amid sales concerns

2025-03-18

(Chosun Biz, Mar. 18, 2025)

Financial probe into Homeplus’s bond sales amid allegations of incomplete oversight

At the full meeting of the National Assembly’s Political Affairs Committee held on the 18th, Financial Services Commission Chairman Kim Byung-hwan (left) answers questions from lawmakers regarding Homeplus, MBK Partners, and SAMBU Construction. /Courtesy of National Assembly Photojournalists.

Kim Byung-hwan, Chairperson of the Financial Services Commission, said on the 18th that “an inspection is underway regarding allegations of incomplete sales” related to Homeplus’s issuance of short-term bonds just before applying for corporate rehabilitation.

On the same day, Commissioner Kim attended an urgent inquiry at the National Assembly’s Political Affairs Committee regarding “Homeplus and MBK Partners” and noted, “We are looking at areas such as commercial papers (CP) and asset-backed securities (ABS).”

During the inquiry, there was criticism regarding Homeplus’s issuance of 82 billion won in asset-backed securities (ABSTB) three days before the significant drop in its credit rating, which served as a trigger for the corporate rehabilitation application on the 25th.

Rep. Kim Nam-geun of the Democratic Party said, “It is inevitable to suspect that Shinyoung Securities (the bond issuer for Homeplus) conducted incomplete sales,” adding, “It is hard to believe that they sold it without knowing that Homeplus’s credit status was in a state of decline, which was a serious situation.”

In response to Democratic Party Rep. Lee In-young’s inquiry regarding allegations of ‘fraudulent sales’ suggesting that Homeplus sold bonds despite being aware of the credit rating decline, Commissioner Kim stated, “We are considering investigating the fraud charge if necessary.”

Lee Bok-hyun, head of the Financial Supervisory Service, said, “We are currently assessing the situation from various aspects under the direction of Chairperson Kim Byung-hwan,” adding that inspections of Shinyoung Securities and credit rating agencies have already begun and that legal issues will also be reflected in future examinations and investigations.

※ Please refer to the article: Financial Services Commission investigates Homeplus’s bond issuance amid sales concerns – CHOSUNBIZ

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